Adds to existing law to establish provisions regarding transparency requirements for certain insurers.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 618 BY BUSINESS COMMITTEE AN ACT1 RELATING TO INSURANCE; AMENDING CHAPTER 24, TITLE 41, IDAHO CODE, BY THE AD-2 DITION OF A NEW SECTION 41-2402, IDAHO CODE, TO ESTABLISH PROVISIONS RE-3 GARDING TRANSPARENCY REQUIREMENTS FOR FIRE INSURERS; AND DECLARING AN4 EMERGENCY AND PROVIDING AN EFFECTIVE DATE.5

Be It Enacted by the Legislature of the State of Idaho:6

SECTION 1. That Chapter 24, Title 41, Idaho Code, be, and the same is7 hereby amended by the addition thereto of a NEW SECTION, to be known and des-8 ignated as Section 41-2402, Idaho Code, and to read as follows:9 41-2402. FIRE INSURERS -- TRANSPARENCY REQUIREMENTS. (1) A fire in-10 surer shall submit complete rate filings to the director of the department11 of insurance at least sixty (60) days prior to use. If the fire insurer uses12 a wildfire risk model, catastrophe model, or wildfire risk scoring method to13 assign risk, the insurer's filing shall not be considered complete unless14 such wildfire risk model, catastrophe model, or wildfire risk scoring method15 used to assign risk is included, along with a description of the model, the16 impact of the model on rates, an actuarial justification for all rating17 factors, mitigation discounts offered, and an explanation of the use of the18 model in underwriting decisions.19 (2) A fire insurer shall make available and readily accessible on its20 public website information on any premium discounts, incentives, or other21 premium adjustments that are available to policyholders who undertake prop-22 erty-specific mitigation actions or provide evidence of community-level23 mitigation actions and the process for appealing a wildfire risk score. The24 website shall identify, as applicable:25 (a) Property-specific mitigation actions for the policyholder to un-26 dertake and community-level mitigation actions that could result in a27 discount, incentive, or other premium adjustment; and28 (b) The amount of the discount, incentive, or other premium adjustment29 associated with each action.30 (3) An insurer that provides a mitigation discount or that uses a wild-31 fire risk model or risk score to underwrite, nonrenew, price, create a rate32 differential, or surcharge the premium based on the policyholder's or ap-33 plicant's wildfire risk shall provide an annual written notice to each pol-34 icyholder or applicant upon application for property insurance of the ap-35 plicable mitigation discounts, the wildfire risk score, and any other wild-36 fire risk classification used by the insurer to underwrite, nonrenew, price,37 create a rate differential, or surcharge the premium based on the policy-38 holder's or applicant's wildfire risk. Such notice shall include:39 (a) A plain-language explanation of the wildfire risk score or other40 wildfire risk classification, including an explanation that insurers41

2 may use different models and have different risk score ranges that could1 result in different risk scores from other insurers;2 (b) The range of scores or classifications that could potentially be3 assigned to the property;4 (c) The relative position of the score or classification assigned to5 the property within that range of possible scores or classifications6 provided by the insurer's risk model;7 (d) A written explanation of why the policyholder or applicant received8 the assigned score or classification that identifies the primary fea-9 tures of the property that influenced the assignment of the score or10 classification; and11 (e) The impact, if any, that each property-specific or community-level12 mitigation action could have on a wildfire risk score or classification13 assigned to the property.14 (4) An insurer shall provide the wildfire risk score or classification:15 (a) To an applicant, no later than fifteen (15) days after the submis-16 sion of the applicant's completed application to the insurer;17 (b) To a policyholder, in the offer of renewal;18 (c) To a policyholder that is not being offered a renewal, with the non-19 renewal notice; and20 (d) To a policyholder or applicant, if that policyholder or applicant21 has completed a property-specific mitigation action or provides evi-22 dence of a community-level mitigation action in sufficient proximity to23 the property to reduce the risk of loss since the time of the application24 to or renewal by the insurer, no later than thirty (30) days after the25 submission to the insurer of the policyholder's or applicant's request26 that the insurer provide a revised wildfire risk score or classifica-27 tion.28 (5)(a) The department of insurance shall annually collect informa-29 tion from fire insurers regarding Idaho-specific exposures, premiums,30 claims, and related information. The department shall determine the31 applicability, scope, method, and exact data requested for such annual32 data collection.33 (b) Any documents created from the data collected by the department of34 insurance pursuant to this section that are not anonymized and aggre-35 gated shall be exempt from disclosure under public records law as pro-36 prietary information.37 (6) No later than January 1, 2027, the department shall make available38 on its public website information to educate consumers, including but not39 limited to:40 (a) Anonymized and aggregated data from the annual data collection pur-41 suant to subsection (5) of this section; and42 (b) Basic information regarding fire or property insurance, such43 as coverage availability, exclusions, premiums, and mitigation dis-44 counts.45 (7) The department of insurance may promulgate rules, subject to leg-46 islative approval, to carry out the provisions of this section.47

SECTION 2. An emergency existing therefor, which emergency is hereby48 declared to exist, this act shall be in full force and effect on and after49 July 1, 2026.50